Mr. Plumb to Mr. Seward.
Sir: The annual report of the Mexican minister of treasury was presented to congress under date of the 28th ultimo, and is published in the Diario Oficial of the 3d and 4th instant. I transmit a copy to the department by this mail.
From this report it appears that the total receipts of the Mexican government for the first six months of the present year, viz: from the 1st January to the 30th June, being the second half of the last fiscal year, were $9,907,336.
This amount is stated to have been derived from the following sources:
| General treasury, direct payment | $26,868 |
| Proceeds of nationalized property | 276,747 |
| Stamped paper | 1,030,468 |
| Direct contributions in the federal district | 352,509 |
| Custom-house of this capital | 1,026,315 |
| Post offices | 384,682 |
| Department of fomento, direct payments | 13,421 |
| Fund of public instuction | 133,627 |
| Chancellaria | 1,558 |
| Maritime and frontier custom-houses | 5,715,881 |
| Treasury collection offices | 518,847 |
| Mints, assay, and duties on silver | 426,413 |
| Total | 9,907,336 |
For the first half of the year the data is incomplete. The city of Mexico was occupied by the liberal forces under General Porfirio Diaz on the 21st of June, 1867, but the constitutional government did not return to the capital until the 15th of July, and it was only at the end of July and in August that many of the federal collection offices were re-established, [Page 599] and some of the maritime custom-houses did not come into the possession of the government until after the reoccupation of the capital.
It is estimated, however, that the receipts for the first half of the fiscal year did not fall short more than one million and a half of those of the second half, thus making an estimated total of receipts for the year ending 30th June last, of $18,300,000.
It is estimated that of the total receipts, even for the last half of the year, fifteen to twenty per cent. failed to reach the control of the government, having been used by state or other authorities.
From the receipts for the past year, in estimating for the future, it is stated there will have to be deducted several items of revenue which have only a temporary character, such as the proceeds of fines and confiscations, proceeds of nationalized property, delayed contributions, &c. The reduction also, made by the suppression in the appropriation bill passed by congress at the close of the last session, of certain imposts previously existing, is estimated at some $800,000.
With the revenue that has thus far been realized, it is stated (I translate from the report) that “for the first time in many years it has been seen, actually repeated in a series of months that includes the bad season in the ports, that the general treasury has paid in full, at the end of every fortnight, their salaries to the civil list, and every fortnight in advance to the military. The employés, and the part of the army that from not residing in the capital do not receive their pay from said office, have yet been attended to with no less regularity.” The expenditures, it is stated, however, absorb all the receipts, and this without making any provision for the payment of the interest on the public debt.
Under this head the minister of treasury states:
The government also believes it to be its duty frankly to manifest to congress that it does not consider that with the imposts now collected in the nation, it is possible to resume the payment of the interest of the debt. To obtain this result it will be necessary, in the judgment of the executive, to impose new contributions, or to wait until the consolidation of order and peace in the republic shall render it possible to reduce the army and the expenses it occasions; unless some sudden development of the great resources of the country shall be attained, in which case the revenue from the present imposts would give sufficient to meet that requirement.
In this situation it appears that the system entered upon under the decree of the 30th November of last year, establishing auctions for the buying in of the bonds of the public debt, is considered as highly desirable. It does not appear, however, that there have been held since that date more than four of these auctions for the foreign debt, and five for the interior debt. Of the English and Spanish bonds, it is stated $1,093,414 have been bought in at a cost of $204,995, and of the bonds of the interior debt, $1,026,827, at a cost of $85,842.
These are considered in the report as highly satisfactory financial results.
It is stated by the minister of treasury in this report with regard to their bonds issued in the United States, of which it is stated there are outstanding $2,425,450, that “the government would have made a supreme effort to pay the interest on these bonds in consideration of their privileged character, if it had not been, as I have already stated, that it has appeared to it unjust to prefer some to the prejudice of others, and because its circumstances have not permitted it to pay the interest of all.”
With reference to reduction of imposts, or changes in the revenue system of the country, the report states:
The government recognizes that there is much to improve in the system of imposts [Page 600] now in force in the republic; it does not yield to any one in its desire to take part in the great work of reforming this legislation; but it believes that all else should be sacrificed to the peace of the nation, and until this is found solidly guaranteed it is not time to think of radical reforms, which have the great peril of destroying what exists without establishing anything real in its place.
The notice of delay with reference to the proposed reform of the tariff, of which I advised the department in my dispatch, No. 197, of the 2d instant, is repeated in the present report. It is stated therein that “in no case is it probable that the new tariff can commence to have effect under a year.”
As in the notice published it was stated that it was not the design to raise or to lower the amount of the duties established under the existing tariff, but to simplify them and to establish a single import duty in place of the various additional duties now in force, so much delay in a matter of mere reform appears singular.
Reference is made in the report to the necessity of establishing lighthouses in the Gulf and on the Pacific coast.
The report also states as follows:
The government of the State of Sonora has solicited the opening to foreign commerce of the port of Libertad, in the Gulf of California. The opening of this port may produce essential advantages to that State and to the nation in general, as it would probably be the route of communication with the Territory of Arizona, where the mining interest is taking great proportions. The government is occupied in carefully examining the antecedents of this affair, in order to proceed in the orbit of its faculties in the manner that it may believe most advantageous to the national interests.
Among the faculties, conferred upon the President of the republic by the Mexican constitution, is the following, article 58, clause 14:
To open all classes of ports, establish maritime and frontier custom-houses, and designate their location.
It is therefore entirely within the discretion of the executive to open the port of Libertad at any time.
The recommendation of the governor of the State of Sonora, in favor of the opening of this port, as I am informed, has been before the government for now upwards of a year; there should be some hope, therefore, of action in the matter at no very distant day.
Since my arrival here, at this time last year, I have not failed, as often as propriety would permit, to commend to the consideration of this government the policy, as well as the advantage to Mexico, of the opening to the commerce of the United States of the transit across Sonora into the Territory of Arizona.
When applying, under your instructions of the 15th September, 1867, for the transit, by way of Guaymas or Libertad, of United States army supplies destined for Arizona, which was granted by way of Guaymas, I at the same time, in my conversations with Mr. Lerdo de Tejada, urged the propriety, as a measure of good policy on the part of this government, which would be appreciated by the commercial interests of the United States, of the free opening of both lines of transit, not merely for military supplies, the property of the government of the United States, but for all commerce.
Such measures, however, have thus far been acted upon very slowly here.
I have the honor to be, very respectfully, your obedient servant,
Hon. William H. Seward, Secretary of State, Washington, D. C.